# Both under perfect competition and monopoly equilibrium output is determined at a point where MR=MC then where lies the difference?

Topic:

The difference is this:

In perfect competition, the MR curve is the same as the demand curve and the MC is the same as the supply.  So the point at which they meet is the equilibrium price.

In a monopoly, the firm still produces the QUANTITY where MR=MC, but in this case the MR curve is NOT the same as the demand curve.  Instead, the demand curve is farther right than the MR curve.

So in both cases, the firms produce the QUANTITY where MR = MC.  In perfect competition, that's the equilibrium price too.  But in a monopoly you have to go up to the demand curve to find the price.

Is there a graph of this in your text?  It should help you understand.  Or look at the graph in the rochester.edu link.  Qm is the equilibrium quantity but then you go straight up from there to the demand curve to get the price.  The other link shows perfect competition.